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Japanese medium and small sized logistics operators in China - How do they manage their business? (Report No.108)
Summary
China, whose logistics needs have increased and varied in accordance with
its economic growth, has become an attractive market for Japanese logistics
operators who have highly qualified logistics techniques and know-how.
However, it is hard for medium and small logistics operators to decide
whether to venture into overseas market, as information as to how Japanese
logistic operators expand and manage their businesses in China is scarce
and not well organized.
This research intends to clearly illustrate how Japanese medium and small sized logistics operators start and expand their business in China, especially focuses on its growth process and key management functions and methods in each growth step.
Key findings of the research are as follows;
・Many medium and small sized logistics operators take an opportunity to
expand to China when their domestic customers (i.e., manufacturers) moved
in there.
・The key administrative functions in start-up entity are, above all, a
powerful partner company to joint, leadership of the expats and excellent
local employee.
・The operators who succeed in expanding their business in China often take a strategy to be watchful and careful for their domestic customers’ needs and offer tailor made services to their customer.
・Localization proceeds when their businesses go into the “expansion” phase, where the roles of expats shift to management.
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